Bitcoin Makes Up Nearly 31% of Portfolios as Institutional Flows Out of Solana Bybit Report
Amid the volatile crypto market, Bitcoin (BTC) has cemented its position as a core asset as investors’ holdings hit nearly 31%, according to Bybit’s latest asset allocation report. This is the highest level since the exchange began collecting data.
Bitcoin Leads Institutional Flows
As of May 2025, BTC accounted for 30.95% of investors’ portfolios, up sharply from 25.4% in November 2024, indicating a rotation toward safer assets. This increase comes despite the tumultuous price action at the beginning of the year, reflecting the market’s confidence in Bitcoin’s sustainability and macro-safe haven role.
Notably, institutions now hold three times more BTC than retail investors, with 40% of institutional portfolios being Bitcoin, compared to just 11.64% for retail investors.
"The sharp divergence between institutional and retail investors shows that Bitcoin is no longer just a speculative instrument but is increasingly becoming a financial hedge," the Bybit report noted.
XRP Breaks Out of the Top, Overtaking Solana
While Bitcoin maintains its lead, XRP (Ripple) has become the focus of a strategic shift. XRP's allocation has increased from 1.29% to 2.42%, making it the third-largest non-stablecoin asset in Bybit investors' portfolios, surpassing Solana (SOL), which has seen a sharp decline.
XRP's rise is not based on short-term price fluctuations but on regulatory expectations. According to data from Polymarket, the likelihood of an XRP ETF being approved for immediate delivery is now priced in at 90%, prompting institutional investors to position the asset early.
Solana Loses Its Glow
Once the star of the 2024 altcoin cycle, Solana has seen its allocations drop by as much as 35% since October last year. Bybit attributes the decline to regulatory uncertainty and increased competition from projects perceived as more institutional-friendly like XRP.
Ethereum Slightly Gains, Still Lagging BTC
Despite Ethereum’s rally in May, investor holdings remain well below Bitcoin. BTC now accounts for $4 of portfolios for every $1 of ETH, a ratio that has remained largely unchanged since late 2024.
However, ETH remains bullish. The allocation increased from 3.89% (April) to over 11% in May, indicating a cautious return by some investors.
Market Signals: Greater Focus on “Mainstream” Assets
Bybit said that the market is gradually consolidating around a small group of major coins, led by Bitcoin and XRP. This shift reflects an increasing emphasis on legitimacy, liquidity, and clarity in network governance, which are key factors in attracting institutional capital.
“Institutions are not simply looking for returns; they are looking for stability, scalability, and a clear regulatory environment, and currently, only a handful of assets meet these criteria,” the report noted.
Summary
Bybit’s May 2025 Asset Allocation Report shows a clear trend: institutional and retail portfolio rebalancing is tilting towards Bitcoin and XRP, while Solana is losing its role in the portfolio due to unclear regulatory factors.
This shift could signal the maturity of the crypto market, as macro and regulatory factors increasingly weigh more heavily than traditional speculative cycles.
